our exparts: MONEY EXPERTS THAT COUNT T op PC M oney G urus T hat C ount Drew Springer - Dollars & Sense Who Needs a Wealth Manager? Answer: Anyone with Wealth. By DREW SPRINGER, Springer Financial Services Question: Who Needs a Wealth Manager? Answer: Anyone Who Has Wealth, Wants to Grow Their Wealth or Wants To Build Wealth. Why shouldn’t people manage their own money? Long-term investing requires rigorous discipline. Most people are tied to their own money with rigorous emotion, and that is because their financial well-being is vitally important to them. However, when investment decisions are influenced by personal emotion, bad deci- sions can be made. Most people that manage their own money either buy mutual funds or they play the stock market. When the market takes a dip, people emotionally tied to their own money tend to panic. Then the market goes up, and people emotionally tied to their own money tend to get excited. Professionals help investors mitigate this emotion and maintain their objectives and provide guidance. Sometimes people make a little money, and then they tend to give into a temptation to sell. If an investment goes down, they tend to want to ride it out until they get back to even. Some ride a stock all the way down to zero hoping for a bounce back. Emotional investors will get excited on the ups and depressed on the downs. Most people that have managed their own money have done all of those things. This illustrates why a money manager is needed. A money manager does not have to contend with emotion; they remove emotion from the investment equation. What should you look for in a money manager? Look for a professional that works for you, not some- one that works for a large company that requires them to make xyz in commissions or else they will get fired. You need someone who is a fiduciary that is dedicated to you, not someone that puts their company or their own pock- etbook first. Be aware of fees; it always behooves you to watch the cost. It is understandable that people try to find the cheap- est way to make money, but it is just as important to find someone you can depend on and trust. Steer clear of high cost funds and use managers that can buy stocks or ETF’s directly. Find someone who will explain all of these costs and who will talk with you face to face. Find some- one who values you and takes time to work with you. You will want this person to have discretion over your account and to make decisions for your benefit – trust is paramount. 108 Practical Application As of this writing, Apple, as a company, is valued at about $860 billion. I can’t afford to buy the $860 billion- dollar company, but I can afford a share of their common stock. If Apple sells enough iPhones, iPads and Macs, I have a chance to make some money. My approach to money management is to buy shares in a basket of companies that I know and like. By owning shares, I get to own a small piece of each of these great companies. I was in Ireland last month. Each time I swiped my Visa or MasterCard I was generating a little bit of revenue for a couple more companies shares that I own, giving me the opportunity to participate in the potential upside of their stock. After Hurricane Harvey hit, I bought shares in one of the largest sheet rock companies in America, a building materials company, two RV manufacturers and a large home builder in the Houston area. If you have a savvy wealth manager, they probably did something simi- lar. While there are never any guarantees, investments like these are what have made money over time. I caution people on going the cheapest route. You want someone to take care of your money and your inter- ests. As for some mutual funds and annuities, they are great for college funds and retirements – your broker’s college fund and his retirement, not yours. Funds and annuities can charge high commissions that may not be in your best interest – it goes back to working with some- one you can trust as paramount to your success.